Cash Dividends SMMA 2014AR. SMMA 2014AR

PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated Fair Value Hierarchy The following table discloses the fair value hierarchy of consolidation financial assets: Level 1 Level 2 Level 3 Total Financial Assets Fair value through profit and loss Shares and warrants 145,711 - - 145,711 Bonds 34,719 - - 34,719 Units of mutual fund 2,994,323 4,447,611 - 7,441,934 Segregated funds net assets - Unit link 797,545 929,992 - 1,727,537 Available for sale Placement with Bank Indonesia 1,749,388 - - 1,749,388 Shares 53,260 - - 53,260 Units of mutual fund 6,629,792 - - 6,629,792 Bonds 2,587,695 - 50,069 2,637,764 Sharia securities - fair value Shares 11,566 - - 11,566 Units of mutual fund 76,954 - - 76,954 Bonds 73,007 - - 73,007 Held to Maturity Bonds 69,726 - - 69,726 Total Financial Assets 15,223,686 5,377,603 50,069 20,651,358 Financial Liabilities Fair value through profit and loss Segregated funds contract liabilities - Unit link 1,525,012 - - 1,525,012 Derivative liability - 63 - 63 Total Financial Liability 1,525,012 63 - 1,525,075 2014 Level 1 Level 2 Level 3 Total Financial Assets Fair value through profit and loss Shares and warrants 661,283 - - 661,283 Bonds 20,000 - - 20,000 Units of mutual fund 3,611,436 3,798,474 - 7,409,910 Segregated funds net assets - Unit link 654,600 1,764,251 - 2,418,851 Derivative assets - 28 - 28 Available for sale Placement with Bank Indonesia 1,142,439 - - 1,142,439 Shares 553,537 - - 553,537 Units of mutual fund 1,571,472 - - 1,571,472 Bonds 6,154,172 - 1,009,624 7,163,796 Sharia securities - fair value Shares 11,381 - - 11,381 Units of mutual fund 31,496 - - 31,496 Bonds 123,696 - - 123,696 Total Financial Assets 14,535,512 5,562,753 1,009,624 21,107,889 Financial Liabilities Fair value through profit and loss Segregated funds contract liabilities - Unit link 1,912,482 - - 1,912,482 2013 The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from stock exchange, securities trader, broker, industry group pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transaction on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 comprise primarily Indonesia Stock Exchange IDX equity investments in shares and warrants, bonds investment and units of mutual fund investment classified as available-for-sale or trading securities and segregated funds net assets - Unit link. - 109 - PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity’s specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 comprise derivative assets, units of mutual fund and segregated funds contract liabilities - unit link. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Instruments included in Level 3 comprise of certain bonds. Fair value of short term investments in securities shares that are traded in Indonesia Stock Exchange, bonds and units of mutual fund and segregated funds net assets - unit link based on fair value, net asset value published was calculated by investment manager. Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest rate. There is no reliable basis for measuring the fair value of investment in shares Note 17, thus, the investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount. The fair value of loan received and securities issued are determined based on discounted cash flow analysis using market interest rates. Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia Intervention, export bill receivable, securities purchased under agreements to resell, receivables from brokers, other assets security deposits, securities sold under agreement to repurchase, payables to brokers, accrued expenses, and other liabilities approximates the carrying value due to short term nature of transactions.

53. Agreements and Engagements

a. On June 6, 2008, the Company entered into room leasing agreement with ASM, a subsidiary, relating to lease at office building of Plaza Simas which is located at Jl. Fachrudin No. 20, Central Jakarta. The lease term is for 15 years, starting from October 1, 2008 up to October 1, 2023 Note 50. b. AJSM, a subsidiary, entered into cooperation agreements, wherein AJSM was appointed as insurance agent with third parties. The third parties are PT Bank Commonwealth Indonesia, PT Bank Mayapada Tbk, PT Bank Permata Tbk, PT Bank Muamalat Indonesia, PT Bank OCBC NISP Tbk, PT Bank Nusantara Parahyangan Tbk, PT Bank Windu Kentjana International Tbk, PT Bank BCA Syariah, BS, PT Bank Kesawan Tbk, PT Bank Syariah Mandiri, PT Bank UOB Buana Tbk, PT Bank Mega Tbk, PT ICB Bumiputera Indonesia Tbk, PT Bank International Indonesia Tbk, PT Bank Mutiara Tbk, PT Bank Victoria International Tbk, Bank of China Limited and some rural banks. c. SMF, a subsidiary, has entered into a Joint Financing Agreement by transferring Receivables Portfolio and Appointment as Security Agent and Chanelling Credit Transfer Agreement with BS Note 11. - 110 -